It was turn of the lower grade iron ore to march ahead of the higher grades for a change as the spot prices in the fancy grade braced USD 190 per tonne, levels. Steel mills in China are laden with burgeoning cost in the face of lukewarm finished market.
Ironically crude steel production has picked up in August by 0.35 % in first 10 days of August at 1.9419 million tonnes per day from 1.93 million tonnes per day in July in anticipation of demand from construction, infrastructure and automobile sector.
However the midway wedge created by the debilitating happening in US, Europe and other economies numbed the gung ho. Domestic levels in China ever since have relapsed into an eerie silence with inkling for correction leaving the mills in lurch.
The stubborn input cost prices and an equally recalcitrant inflation has compelled the mills to scoot for rear guard measures in the form of cost saving mechanisms. Mills have gone for cost reduction by swapping higher grade with lower grade material.
At the same time the inhibiting fiat accompli by the Mumbai High Court on Goa mines to get registered afresh under the Environment Clearance laws has created shortage apprehension
Iron ore fines
|Fe 60/59 %||1%|
|Fe 59/58 %||2%|
|Fe 57/56 %||2%|
|Fe 55/54 %||3%|
|Fe 54/ 53 %||4%|
|Fe 53/52 %||5%|
|Fe 52/51 %||5%|
Change is on Sep 2nd as compared to 26th Aug 2011
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